Price hikes drive record energy switch

Cassandra Morgan | July 29, 2022

More Australians opted to switch energy providers than ever before in June this year, as price hikes compelled consumers to consider the competition.

Nearly 240,850 households across the country changed power companies in June, according to the Australian Energy Market Operator. 

That included about 87,000 households in Victoria, 85,000 in NSW, 51,000 in Queensland and 17,000 in South Australia. 

The number of people switching was only trumped back in April 2021, when a mid-sized retailer was sold to a larger retailer and about 267,000 were automatically changed over.

Joel Gibson, from consumer network One Big Switch, said the move en masse in June was due to the largest power price hikes the country has seen.

A report by the energy market operator on Friday confirmed unprecedented wholesale prices, which are now flowing through to households and businesses.

That could be a driver for more people to change energy providers in July, with most of the big retailers not increasing their prices until July or August, Mr Gibson said.

“Four retailers have also gone out of business, mostly in July – Enova Energy, Pooled Energy, Weston Power & Power Club – and their customers will be automatically switched to big retailers,” he said.

“And finally, the Victorian government has also this month started paying households $250 just for visiting their energy comparison website.” 

AGL and EnergyAustralia will hike rates for 5.5 million customers next Monday.